I’m sticking with my strong buy-dip bias in the AUD/USD and I expect the AUD to continue to make strong gains on the crosses. But we may well be in for a few months of broad sideways trading between .92/.95 and this seems to be the way that the options market is calling it. The bids near 92 cents were extremely large and local dealers say that any topside stretches are likely to run into similarly large offers, with the options market tying in a range.
The last top-side foray stalled at .9425 and there will be stops above this level, but the sellers will be waiting patiently just above there.